By Sam Boughedda
Chinese e-commerce firm JD.com (HK:9618) (NASDAQ:JD) will spin off JD Industrials and JD Property and list them on the Hong Kong Stock Exchange, the company announced Thursday.
JD Industrials is the company's supply chain based technology and service provider unit. JD Property is its infrastructure property asset management arm. Once the spinoffs are complete, JD.com said it will indirectly hold over 50% of the shares in both units, and they will remain subsidiaries of the company.
The e-commerce firm's US-listed shares are currently up more than 7% following the news. However, the stock is still down more than 27% in the last 12 months, with Chinese tech companies hit by a wave of regulatory crackdowns over the last couple of years.
JD's decision follows rival Alibaba (NYSE:BABA), which announced Tuesday that it is planning to split into six units, the largest restructuring in its history. BABA will also explore fundraisings or listings for most of the units.